Task 2
Mack and Phil are great at washing trucks, and have a sound customer base, but they lack expertise in financial management. They emailed you the following questions. Please provide your response.
- How did you ensure that the budgets you developed incorporated the business objectives we set?
- We noticed the budget for payments to contractors looks a bit higher than we discussed. Can you please explain why?
- The increase in the cash rate has been all over the news! Given we are looking at taking out a business loan to purchase some much-needed equipment, how will that affect our business? How can we protect ourselves?
- We would like to set realistic wash targets for the contractors. What advice can you give us to help us do this effectively?